NI Water Budget Crisis: Implications for Development and the Construction Industry

18.08.2024

On Wednesday, the Royal Society of Ulster Architects (RSUA) hosted a meeting at the Mount Charles boardroom with key representatives from NI Water, including Stephanie McCullagh, Director of Customer & Operations, Davy McGrath, Head of Developer Services and Gary Lawther, Customer Services Senior Manager. The session delivered stark news to the gathered architects about the future of development in Northern Ireland.

Financial Deficits and Infrastructure Shortfalls

NI Water is currently facing a severe financial crisis, with a reported £40 million deficit in its annual operational budget and a staggering £145 million shortfall in its capital budgets. Over the next three years, the utility is projecting a capital budget deficit of £1 billion. These financial constraints are having a direct impact on the planning and development process, which has already been fraught with challenges.

Impact on Planning Applications

For some time now, developers have struggled with delays as NI Water has imposed costly requirements for Waste Water Impact Assessments (WWIAs). These assessments, along with associated fees for consultants, topographical surveys, CCTV surveys etc, have significantly extended project timelines, with delays often exceeding well over exceeding a year. Developers have been forced to finance storm water attenuation solutions, which can range from tens to hundreds of thousands of pounds.

This month, the situation reached a critical point. Due to limited budgets and the deteriorating state of NI Water’s infrastructure, the organisation has identified 34 networks across 23 towns that are no longer suitable for developer-led solutions. For developers with sites in these areas that will increase capacity on the NI Water system, the utility is now recommending refusal of planning applications.

Challenges with Treatment Works and Combined Sewer Overflow

The crux of the issue lies with foul network UIDs (Unsatisfactory Intermittent Discharges). The Combined Sewer Overflow systems in these 23 identified towns are currently polluting and are therefore closed to new connections, with no budget to provide much needed upgrade work. Current legislation prevents developers from funding necessary upgrades to these systems, even if they are willing to do so. This legislative barrier leaves developers with limited options.

Options for Developers

If you already have planning permission, NI Water is obligated to connect your development to the system. Therefore, it is crucial to implement any live planning approvals as soon as possible. If your planning approval lapses, you could risk being unable to secure approval again under the current constraints. Additionally, if you have a brownfield site and can demonstrate betterment, this may also be acceptable.

As for on-site wastewater treatment, options are bleak. NI Water will not adopt any new on-site treatment plants due to budget constraints, and private treatment works must be approved by the Northern Ireland Environment Agency (NIEA), which is unlikely to grant permission.

The Path Forward: Early Engagement and Legislative Change

NI Water strongly recommends that developers submit a Pre-Development Enquiry (PDE) as early as possible in the project planning process. Although there is a £320 fee associated with the PDE, NI Water endeavors to provide timely responses, advising whether the existing infrastructure can accommodate the proposed development. If the infrastructure is inadequate, developers will be informed early on, avoiding the costly process of conducting a WWIA for solutions that ultimately may not be accepted.

While the current list of ‘no connection’ areas includes 23 towns, NI Water has warned that the situation is likely to worsen. This crisis poses a significant threat to the growth of Northern Ireland’s economy and could have long-term detrimental effects on the construction industry and beyond. Architects, Engineers, Contractors, business owners, home owners; this WILL affect us all.

Call to Action

NI Water is lobbying for urgent action, including changes to legislation and approval of a realistic budget. It is imperative that all stakeholders, including architects, developers, and the public, advocate for our MLAs to address this issue. The future of development and economic growth in Northern Ireland depends on it.